Young Drivers to Get Credit for Accident-Free Driving in Parents' Cars, Military Service... FSS to Revamp Auto Insurance Enrollment Process

FSS to Help Young Adults Starting Their Careers Save on Insurance Premiums
Plans to Improve Guidance on Driving Experience Recognition and Discount Riders

The Financial Supervisory Service said on the 2nd that it plans to revise auto insurance enrollment procedures in November, including the system for recognizing driving experience for young adults aged 19 to 34 who are just starting their careers and the information provided about discount riders for young drivers.

When young adults enroll in auto insurance remotely, including through cyber marketing (CM) channels, insurers will provide information about the driving experience recognition system and display a pop-up separately explaining discount riders available to young drivers when they select riders. Procedures will also be revised to ensure that relevant information is not omitted in face-to-face and telemarketing (TM) channels.

The FSS also outlined auto insurance programs that may be useful for young people to know about. Under the "secondary insured driver's driving experience and accident-free record recognition program," young drivers can receive credit for up to three years of driving their parents' car when enrolling in auto insurance. They can also receive credit for an accident-free record if neither they nor their parents have an accident history.

For example, a 28-year-old, identified as A, could be listed as a secondary insured driver under a family-only rider on a car insurance policy in his mother's name and drive for three years without an accident. If he then buys an Avante in his own name for 20 million won and enrolls in auto insurance, he could receive a 46.1% discount on his premium, or about 610,000 won. This is because he would receive credit for three years of insurance coverage and three accident-free years.

Some young people can also have periods of service as military drivers or use of long-term rental cars counted toward their insurance enrollment history under the "insurance enrollment history recognition program."

For example, if a 28-year-old, identified as B, receives credit for 18 months of service as a military driver and 18 months of using a long-term rental car, he could save 28.9% on his premium, or about 380,000 won, when he enrolls in auto insurance after buying an Avante for 20 million won.

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